Exciting news for FIRST TIME HOMEBUYERS!
There is important new legislation that is beneficial to first time home buyers. We strongly recommend you take advantage of this tax credit by the deadline of mid-2009. Thanks to J. Lennox Scott, for the following information about The Housing and Economic Recovery Act of 2008.
Buying smart in today’s market got a little easier recently following the signing of the Housing and Economic Recovery Act of 2008 by President Bush. There are significant advantages to assist first time buyers, such as a repayable first-time home-buyer tax credit. First-time buyers are important to the health of the housing economy because their home purchases help to stimulate the economy. Through the home-buyer tax credit, buyers who are purchasing for the first time or who haven’t owned a property in the last three years can now qualify for a tax credit equal to 10% of their home purchase price, up to $7,500.
It is important to note that to qualify, the home must be purchased between April 9, 2008 and July 1, 2009. The credit phases out if the buyer’s income exceeds $75,000 for an individual or $150,000 for a couple filing jointly and it must be paid back over a 15 year period in equal installments. The credit can be claimed on the buyer’s 2008 tax return even if the purchase is made in 2009 (it’s important to note that this is a tax credit and not a tax deduction).
Another key point of the housing bill includes much needed FHA modernization which aims to adjust loan limits so that they are more aligned with current home values. The bill allows Fannie Mae and Freddie Mac to serve more home-buyers by raising loan limits in high cost areas above the standard conforming limit to 115 percent of the median house prices and up to 150 percent of the conforming loan limit.
The Housing and Economic Recovery Act is expected to play a critical role in strengthening the housing market and overall economy. The last time Congress passed legislation like this in the 1970s, the housing market saw a significant increase in activity.
The passing of the Housing and Economic Recovery Act marks the beginning phase of the next ten-year housing cycle in which prices in the more affordable markets will only continue to appreciate. This landmark legislation will contribute to the stabilization of the overall real estate economy.
The Weeks team strongly believes this is a buyers market and can customize a home search for you that fits your lifestyle. Contact us for more information. We are here for all your housing needs!
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